Damri Mergers And PPDs Get Jokowi's Restu, Minister Of SOEs: The Best Steps So That The Business Of The Two Companies Don't Overlay

Damri bus fleet. (Photo: Doc. Antara)

JAKARTA - President Joko Widodo (Jokowi) gave his blessing to SOE Minister Erick Thohir to unite two public transportation SOEs, namely the Damri General Company (Perum) and Perum PPD. This merger was encouraged by the Ministry of SOEs to make the two companies healthy.

SOE Minister Erick Thohir explained that the merger or merger of the two Perums was a corporate action based on the equivalence of the two business conditions.

According to Erick, the unification of these two companies is the best step so as not to overlap. Because, the two Perums have the same business focus.

"Incidentally, both of them were affected by the COVID-19 pandemic. The merger will further strengthen the range and expand the network," he said in an official statement, Tuesday, December 27.

Erick believes that the merger will strengthen the company's condition. Companies with the merger will be able to focus more on maximum efforts to improve market performance and expansion in the future.

Previously, through the Deputy Minister of SOEs Kartika Wirjoatmojo, the Ministry of SOEs proposed that Damri receive a State Capital Participation (PMN) in 2023 of IDR 870 billion.

Later, Damri will carry out business assignments and developments in the provision of fleets for pioneer routes, National Tourism Strategic Areas (KSPN), electric bus fleets for urban areas through buy the service, as well as to increase the company's business capacity.

"Damri also hasn't received PMN for a long time, this is for pioneers because there are quite a lot of assignments from the Ministry of Transportation for new areas, including reforming electric buses in big cities, such as in Jakarta, Medan and Surabaya. Slowly these cities will convert all buses into electric buses," said Kartika.

The merger of Damri and PPD is listed in Presidential Decree Number 25 of 2022 concerning the Program for the Preparation of Government Regulations in 2023. SOE Minister Erick Thohir initiated a Government Regulation to merge Perum Damri and Perum PPD.

The regulation regarding the merger of Perum PPD into Perum DAMRI by the Minister of State-Owned Enterprises and the Minister of Finance is in accordance with their respective authorities based on the provisions of the legislation, thus regulated in the Presidential Decree.